locamerica er 4t15 - amazon s3 · 2016 2017 1q18 2q18 3q18 roic cost net of taxes-0.9 p.p. spread...

Earnings Release 3rd Quarter, 2018

Release

1

3Q18 Results

3,461

5,684

0

1,00 0

2,00 0

3,00 0

4,00 0

5,00 0

6,00 0

3Q17 3Q18

1,669

2,138

0

50 0

1,00 0

1,50 0

2,00 0

2,50 0

3,00 0

3Q17 3Q18

4,792

12,843

-

2,000

4,000

6,000

8,000

10,00 0

12,00 0

14,00 0

3Q17 3Q18

72,653

43,363

3,925

44,644

119,941

3Q17 3Q18

Fleet Management RaC Franchises

156.8257.1

153.2148.2

422.3

305.0

832.6

3Q17 3Q18Fleet Management RaC + Franchises Used Cars Sales

107.2

236.5

0

50

10 0

15 0

20 0

25 0

3Q17 3Q18

12.3%

12.9%12.4% 12.4% 12.5%

13.2%

10.0%

7.4%6.9% 6.7%

2016 2017 1Q18 2Q18 3Q18

ROIC Cost Net of Taxes

-0.9 p.p.

Spread

5.8 p.p.

20.1

60.1

0

10

20

30

40

50

60

70

3Q17 3Q18

OPERATING HIGHLIGHTS ¹

FINANCIAL HIGHLIGHTS ¹

Numbers of Daily Rentals (thousand) Fleet Management

Numbers of Daily Rentals (thousand) Rent-a-Car (excluding Franchises)

+28.1%

Number of Cars Sold

+168.0% +168.7%

+64.2%

Fleet at the End of the Period

Net Revenue (R$ million) Recurring EBITDA (R$ million)

Recurring Net Income (R$ million)

+173.0% +120.6%

ROIC vs Debt Cost after Tax Income, Spread

Record

Record

+199.0%

(1) 2018 figures include Unidas S.A. results as of 2Q18. (2) Considers RAC Franchises’ fleet in 3Q18.

Record

Record

2

We are very pleased to present the 3Q18 results of New Company - resulting from the consolidation of Locamerica and Unidas S.A.,

which, as of this quarter, will begin to use “Unidas” as the business name of both companies. More than ever, we are one. The Company continues to be listed on the B3 under the corporate name Companhia de Locação das Américas and its ticker remains unchanged as LCAM3. We would like to begin our message by giving you an update on the latest developments of the merger. To date, we have already obtained positive outcomes from the five synergy focuses, especially in Vehicles Purchase and Debt Refinancing. New synergy developments will occur in 4Q18 and in 2019, mainly those focused on processes and systems. Regarding the markets in which we operate, we confirmed once again how healthy the Fleet Management and Car Rental segments are in this moment, with a record-breaking number of daily rentals this quarter. In addition, Fleet Management maintained a high occupancy rate at 98.2% and, in 3Q18 alone, we had over 4.2 thousand new vehicles contracted, a great deal of which from customers that are outsourcing their own fleet for the first time. In the Car Rental segment, we broke the important mark of 2 million daily rentals in a quarter. This performance was coupled with the 8.6% increase in the average daily rate over the last 12 months, which, in turn, reached the highest level for the year, even though this is a period of lower seasonality in relation to 1Q18. This result shows the Company's commitment to practicing sustainable rates for the business and the successful investment in higher value-added fleets, which were not available for Unidas S.A. prior to the merger. In the Used Cars segment, the Company successfully maintained its car sale schedule. Regarding the market, the lower-than-expected price increase of brand-new cars had an impact on retail and wholesale prices. This more competitive landscape in the Used Cars segment should remain unchanged over the next quarters, resulting in positive – albeit lower – margins, which will be largely offset by the expansion in the car rental margins, in line with the consolidated returns expected by the management. In addition, it is important to highlight that the division will also benefit from the several synergy gains from the consolidation with Unidas S.A. In terms of financial results, even without capturing all the synergies to be generated by the consolidation with Unidas S.A. yet, we reported a consecutive increase in net income higher than the net revenue growth over the last 12 months, both in 3Q18 and in 9M18, showing the Company's focus on growing profitable. Moreover, 3Q18 net income is the largest ever posted in a quarter by the Company, even on a comparable basis, which allowed us to break once again the historical ROE record, which in the annualized 3Q18 totaled 22.8%. Still in terms of return, the good financial performance in the quarter allowed a 3Q18 annualized ROIC of 12.5%, which, coupled with the lower financial costs of the last debenture issues, resulted in a new record for the spread between ROIC and the average cost of debt, which rose to 5.8 p.p. Also noteworthy were the important awards Unidas won over the period. We are very proud to say that our Company was chosen, for the second consecutive year, the Best Company in Customer Satisfaction in the “Car Rental” category by the 2018 ranking of the 100 Best Companies in Customer Satisfaction, organized by the MESC Institute. In the overall ranking, we were ranked 16th, well within Brazil's top 20 best companies for the second consecutive year. Not only have we been acknowledged for the excellence of our operations, but also for our administrative work and transparency with the market. This diligence allowed us to receive from Brazil's National Association of Finance, Administration and Accounting Executives (ANEFAC), the 2018 Transparency Trophy (“Troféu Transparência”) in the “Companies with net revenue of up to R$5 billion” category. Unidas also launched its new Investor Relations website (ri.unidas.com.br), to replace those from Locamerica and Unidas S.A. In this new website, we unified all information from both companies to meet the needs of our shareholders and debenture holders, as well as the market in general.

Finally, we would like to thank all our stakeholders, in particular the 2,405 members of our staff, for delivering once again results in line with the goals set by the Company, which consolidates our market position as Brazil’s leading company in Fleet Management and the second largest in Rent-a-Car. To our shareholders and the capital markets in general, we reiterate our commitment to creating value, not only in terms of results delivered, but also in terms of absolute transparency and the highest level of investor relations.

Thank you very much!

Luis Fernando Porto CEO

MANAGEMENT’S COMMENTS

3

In the third quarter of 2018, the sales market for new vehicles (cars and light commercial vehicles only) grew by 16.7% year on year, with 700 thousand units sold. The sales market for used vehicles decreased slightly, by 3.4% over the same period, with 2.8 million units sold in 3Q18.

bb

In the third quarter of 2018, despite the contraction in the market for Used Car vehicles (up to 3 years old), Unidas boosted sales by 168.0% year on year, with a total of 12,843 vehicles sold. This enabled the Company’s market share for Used Cars (up to 3 years old) sales in Brazil to grow from 0.32% in 3Q17 to 2.57% in 3Q18, proving that even in a scenario of decreasing sales in the market, Unidas has continued and will continue to carry out its pre-owned sales project, underpinned by its significant competitive advantage over the majority of its competitors in this segment.

3.6 3.32.5 2.0 2.2 1.6 1.8

0.6 0.7

9.5 10.1 10.0 10.0 10.7

8.0 8.0

2.9 2.8

2.6x3.1x

4.0x

5.0x 4.9x 5.1x4.5x

4.9x4.3x

-3.0x

-2.0x

-1.0x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

0

2

4

6

8

10

12

14

16

18

20

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

# of New Cars Sales # of Used Cars Sales Used Cars Sales/New Cars Sales

5.0 5.1 4.31.9 1.5 0.5

4.4 4.53.1

4.3

1.0 1.6

1.5 1.9

1.22.0

0.5 0.8

2.52.7

1.9 2.4

0.7 0.9

13.414.2

10.5 10.6

3.7 3.8

2016 2017 9M17 9M18 3Q17 3Q18

Up to 3 years From 4 to 8 years From 9 to 12 years More than 12 years

10,522 11,565 12,729 12,40216,710

11,442

30,049

4,792

12,843

0.38% 0.51% 0.42% 0.25% 0.33% 0.27%1.58%

0.32%2.57%

-20 .0 0%

-15 .0 0%

-10 .0 0%

-5.00 %

0.00 %

5.00 %

0

5,00 0

10 ,0 00

15 ,0 00

20 ,0 00

25 ,0 00

30 ,0 00

35 ,0 00

40 ,0 00

45 ,0 00

50 ,0 00

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

Sales of New and Used Cars in Brazil (Cars and light commercial vehicles – millions of units)

Used Car Sales by Age in Brazil (millions of units)

Number of Sold Cars and Market Share (Market up to 3 years)¹

I – SECTOR SCENARIO

Sources: FENABRAVE, FENAUTO

+12.5%

+16.7%

-3.4%

Sources: FENABRAVE, FENAUTO

2.0% -55.8% -66.7%

+168.0%

+162.6%

(1) 2017: includes Auto Ricci as of 3Q17, and from May 11, 2017 to June 30, 2017 by equity method. 2018: includes Unidas S.A. as of 2Q18, and from March 09, 2018 to March 31, 2018 by equity method.

4

Performance in the Period

For yet another quarter, Unidas reached a new record in its number of daily rentals, which totaled 5,684 thousand in 3Q18 with an annual growth of 64.2% compared to 3Q17. In 9M18, the Company had an annual expansion of 93.6%, totaling 14,894 thousand daily rentals, a volume that was also higher year on year, as a result of the Company's organic growth and the consolidation with Unidas S.A.

Average monthly rate in 3Q18 was R$1,492, remaining stable over the 12-month period. This performance was due to the synergy generated from the consolidation of Locamerica and Unidas S.A., which allowed the arrival of large clients – with lower average car rental rates – in 3Q18 to be balanced with the acquisition of small- and medium-sized clients – with higher average car rental rates. In 9M18, the 6.0% decrease year on year, mainly reflects the reduction in the basic interest rate during the quarter. We highlight that despite the 30.3% drop in CDI in 12 months, our Fleet Management tariffs remained stable, demonstrating the Company's ability to grow while maintaining or improving margins, demonstrating the Company's ability to grow while maintaining or improving margins, proving the robust growth of the Fleet Management market in Brazil.

As a result, net revenue from Fleet Management totaled R$257.1 million in 3Q18, an annual increase of 64.0%, due to a 64.2% rise in the number of daily rentals and the maintenance of the average rate in the period. In 9M18, net revenue for this segment was R$665.9 million, a year-on-year increase of 84.3%, mainly due to a 93.6% increase in the number of daily rentals.

7,6078,232 8,057 8,335

11,179

7,693

14,894

3,461

5,684

1,407 1,502 1,609 1,597 1,546 1,564 1,470 1,495 1,492

-2,00 0

-1,50 0

-1,00 0

-50 0

-

500

1,000

1,500

0

2,00 0

4,00 0

6,00 0

8,00 0

10 ,0 00

12 ,0 00

14 ,0 00

16 ,0 00

18 ,0 00

20 ,0 00

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

# of Rental Days Average Montlhy Tariff

322.8373.8 392.0 402.4

522.9

361.4

665.9

156.8

257.1

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

II – FLEET MANAGEMENT

Net Revenue from Fleet Management¹ (R$ million)

CAGR (2013-2017) +12.8% +84.3%

+64.0%

+93.6%

+64.2%

CAGR (2013-2017) +10.1%

(1) 2017: includes Auto Ricci as of 3Q17, and from May 11, 2017 to June 30, 2017 by equity method. 2018: includes Unidas S.A. as of 2Q18, and from March 09, 2018 to

March 31, 2018 by equity method.

Number of Daily Rentals (thousand) and Average Monthly Rate (R$)¹

Record

5

Unidas’s average occupancy rate continued at record levels, ending 3Q18 at 98.2%, 1.1 p.p. above the figure for 3Q17. This

performance has benefited from improved processes and technology implemented by our operations area, as well as the organic increase of this rate. For the same reasons, the average occupancy rate for 9M18 was 1.1 p.p. higher than a year earlier.

Business Activity The 3Q18 showed 117.4% more vehicles rented than in 3Q17. The aggregate value of new rental agreements signed in 3Q18 was up by 221.7% on the previous year, totaling R$241.3 million. In 9M18, 10,228 vehicles were rented, an increase of 86.1%, for a total global value of R$478.6 million, 97.0% higher than in 9M17. Such performances are explained by the acquisition of relevant contracts in 3Q18. In addition, the increase in the aggregate value also reflects the longer duration of these new contracts compared to the average of the last quarters.

93.6%

94.8%

96.2%96.8% 97.0% 97.1%

98.2%

2013 2014 2015 2016 2017 3Q17 3Q18

4,629

7,0325,496

10,228

1,938

4,214

195.1309.6

243.0

478.6

75.0

241.3

-10 00.0

-80 0.0

-60 0.0

-40 0.0

-20 0.0

0.0

20 0.0

40 0.0

0

2,00 0

4,00 0

6,00 0

8,00 0

10 ,0 00

12 ,0 00

14 ,0 00

2016 2017 9M17 9M18 3Q17 3Q18

# of Vehicles Global Value (R$ Million)

New Contracts¹²

Average Occupancy Rate¹

Change (2013-2017) +3.4 p.p.

+117.4%

+1.1 p.p.

+86.1%

(1) 2017: includes Auto Ricci as of 3Q17, and from May 11, 2017 to June 30, 2017 by equity method. 2018: includes Unidas S.A. as of 2Q18, and from March 09, 2018 to March 31, 2018 by equity method. (2) For New Contracts, contract renewals are not being considered.

II – FLEET MANAGEMENT

+51.9%

6


The volume of daily car rentals (excluding franchises) in 3Q18 had an annual growth of 28.1%, breaking, for the first time, the 2 million mark of daily rentals in a quarter and totaling a record-breaking 2.1 million daily rentals. We would like to point out that the annual growth rate in 3Q18 was slightly above the composed annual growth rate presented by the division between 2013 through 2017, of 28.0% per year. In 9M18, total volume was 5.9 million daily rentals, resulting in a 26.4% annual growth.

The strong demand for Rent-a-Car in the Brazilian market allowed the double-digit growth in the number of daily rentals to be reached alongside the expansion of the average daily rate, which in 3Q18 was R$74.5 or 8.6% higher than the average rate of 3Q17. In 9M18, the average daily rate was R$73.2, 3.5% above the amount of R$70.7 in 9M17. The average rate performance is the result of several actions carried out throughout the year to give new dynamics to our Rent-a-

Car business, such as: (i) increasing the car mix, including luxury vehicles, (ii) the strengthening in brand investment, (iii) renewal of the entire fleet, searching for more current models and guaranteeing low mileage vehicles, (iv) better dynamic pricing systems and (v) systems and processes to improve customer experience. The Occupational Rate in 3Q18 was 76.7%, 8.3 p.p. lower to the one in 3Q17, while in 9M18 it was 79.9%, 3.1 p.p. lower than a year earlier. These reductions are due to the expansion in the supply of vehicles in 3Q18, with the enhancement of the fleet mix, offering luxury cars to our clients, in addition to the Company's initiative of preparing for the growth in demand in 4Q18 and 1Q19 and for the future growth of the business without jeopardizing the quality level of the service for our clients.

2,416

3,509 3,973

4,797

6,486

4,677

5,912

1,669 2,138

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

72.3 71.4 68.674.2 73.9

70.874.5

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Average Daily Rate (R$)

83.3%80.9%

85.0% 85.0% 83.6%79.5%

76.7%

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Occupancy Rate

III – RENT-A-CAR

+26.4%

+28.1%

Number of Daily Rentals¹ (Excluding Franchises, thousand)

Change 3Q18 vs

3Q17 8.6% Change 3Q18 vs 3Q17 -8.3 p.p.

(1) Considering the history of Unidas S.A. for a better comparison. Results are consolidated in Unidas as of 2Q18 and by equity method in the period of March 09, 2018 to March 31, 2018. The Average Daily Rate of Car Rentals is calculated based on the division of gross revenue by the number of daily rentals, excluding internal daily rates. The Occupancy Rate is calculated including the daily rentals of cars sub-rented to the Fleet Management segment.

Record

7

As a result of the operating achievements mentioned above, Net Revenue of the Rent-a-Car segment totaled R$144.9 million in 3Q18, a 38.7% annual growth. In 9M18, Net Revenue was R$394.2 million, a 30.4% increase compared to 9M17. Both expansions were beyond the composed annual growth rate of 21.0% per year between 2013 and 2017 and confirm the assertiveness of the Company's strategy of accelerating its growth in line with its profitability.

Customer Service Network

Our service network for Rent-a-Car consisted of 219 stores at the end of 9M18, 118 of them our own and 101 franchises, covering all 26 Brazilian states and the Federal District.

197.9

273.0289.5

324.5

424.4

302.2

394.2

104.5

144.9

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

80 84 94 99 104 99 118

73 78

102 128 112 120

101 153 162

196

227 216 219 219

2013 2014 2015 2016 2017 9M17 9M18

Own Stores Franchises

Rent-a-Car Net Revenue¹ (Excluding franchises, R$ million)

+30.4%

+38.7%

(1) Considering the history of Unidas S.A. for a better comparison. Results are consolidated in Unidas as of 2Q18 and by equity method in the period of March 09, 2018 to March 31, 2018.

III – RENT-A-CAR

Number of Stores – Rent-a-Car

8


Sales of Used Cars vehicles totaled 12,843 vehicles in 3Q18 (+168.0% YoY) and 30,049 vehicles in 9M18 (+162.6% YoY), reflecting higher sales volumes by the Company, including Unidas S.A. It is also worth noting that, for 9M18, we are taking into account the amount of vehicles sold by Unidas S.A. after the conclusion of the consolidation on March 9, 2018. Considering the nine months pro forma of Unidas S.A., this amount would total 36,707 vehicles. The average selling price was R$32.9 thousand in 3Q18 and R$32.3 thousand for 9M18, corresponding to annual increases of 6.5% and 1.3%, respectively, as a result of the different mix of vehicles sold in these periods.

Fleet Retirement totaled 10.2 thousand vehicles in 9M18 and accounted for 8.6% of the total fleet, 3.0 p.p. more than in 3Q17. The Company intends to work with a stock of 7.5% to 8.5% of the total in the quarters ahead.

The Used Cars segment revenue in 3Q18 was R$422.3 million, up 185.0% compared to 3Q17, thanks to a 168.0% increase in the number of vehicles sold and a 6.5% rise in the average selling price. In 9M18, Net Revenue amounted to R$969.5 million, up 165.5% compared to 9M17, thanks to a 162.6% growth in the number of vehicles sold and a 1.3% increase in the average selling price.

10,522 11,565 12,729 12,402

16,710

11,442

30,049

4,792

12,843

20.7 22.1 24.828.4

31.4 31.9 32.3 30.9 32.9

-40 .0

-30 .0

-20 .0

-10 .0

0.0

10 .0

20 .0

30 .0

-

5,000

10,00 0

15,00 0

20,00 0

25,00 0

30,00 0

35,00 0

40,00 0

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

# of Cars Sold Average Price of Cars Sold

3.5 3.72.8

1.5 2.0 2.5

10.2

12.4% 12.3% 9.0% 5.5% 4.2% 5.6% 8.6%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2013 2014 2015 2016 2017 9M17 9M18

Cars Available for Sale as % of Total Fleet

IV – USED CARS SALES

CAGR (2013-2017) +12.3%

Number of Cars Sold and Average Selling Price (R$ thousand/Car)¹

+162.6%

+168.0%

Fleet Retirement – Consolidated¹ (Vehicles – thousand)

+308.0%

3.0 p.p.

(1) 2017: includes Auto Ricci as of 3Q17, and from May 11, 2017 to June 30, 2017 by equity method. 2018: includes Unidas S.A. as of 2Q18, and from March 09, 2018 to March 31,

2018 by equity method.

9

Gross revenue from retail sales totaled 68.7% and 68.1% in 3Q18 and in 9M18, respectively. The Gross Profit of the Used Cars segment amounted to R$42.5 million in 3Q18 (+114.6% YoY) and R$111.6 million in 9M18 (+150.2% YoY), while its Gross Margin was 10.1% (-3.3 p.p. YoY) and 11.5% (-0.7 p.p. YoY) in the respective periods. As previously mentioned, the increase in competition in the used car sales market with the lower-than-expected price increase of brand-new cars had a negative impact on prices of retail and wholesale sales channels, with the consequence impact on the segment's gross margin. The Company is comfortable with the margins presented, since they maintain a positive EBITDA in Used Cars division.

Customer Service Network

At the end of September 2018, the network of Used Cars vehicle stores consisted of 75 units across ten different Brazilian states.

This is in line with the Company’s strategy of retiring vehicles more profitably by targeting sales to end customers. Six stores were closed during the quarter, reflecting the Company's sharp focus on keeping stores that yield positive results, therefore justifying their maintenance. On the other hand, the Company intends to open from 10 to 15 Used Cars stores by the end of 2018, targeting the retail market and in cities where we previously did not have a presence, improving inventory turnover and logistics for retiring vehicles.

218.1 255.4 316.3 352.3

525.4365.3

971.0

148.3

423.3

15.2%29.4% 33.1%

49.0%63.3% 63.8% 68.1% 64.6% 68.7%

-10 0.0%

-80 .0 %

-60 .0 %

-40 .0 %

-20 .0 %

0.0%

20 .0 %

40 .0 %

60 .0 %

0.0

20 0.0

40 0.0

60 0.0

80 0.0

10 00.0

12 00.0

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

Used Cars Sales Net Revenue % of Retail

Used Cars Sales Results

(R$ million)3Q18 3Q17

Var.

3Q18 vs 3Q179M18 9M17

Var.

9M18 vs 9M17

(+) Used Cars Sales Revenue 422.3 148.2 185.0% 969.5 365.1 165.5%

(-) Cost of Cars Sold (379.8) (128.4) 195.8% (857.9) (320.5) 167.7%

= Used Cars Sales Results 42.5 19.8 114.6% 111.6 44.6 150.2%

% Used Cars Sales Gross Margin 10.1% 13.4% (3.3) p.p. 11.5% 12.2% (0.7) p.p.

4 6 7 11,0 23,0 19,0

47,0

19,0

47,0

24 24

8 7 6 3

44

4

4

4

12,0 13,0 13,0 14,0

27,0 23,0

75,0

23,0

75,0

10,522 11,565 12,729 12,402 16,710 11,44230,049

4,792 12,843

-200000,0

-150000,0

-100000,0

-50000,0

-

-

20,0

40,0

60,0

80,0

100,0

120,0

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

Retail - Own Retail - Franchises Wholesale Cars Sold

Number of Stores – Pre-Owned¹

+ 15 stores 2017 vs 2013

+ 52

stores

Revenue from Vehicle Sales¹ (R$ million)

+165.5%

+185.0%


IV – PRE-OWNED SALES

10

At the end of September 2018, the Company’s consolidated fleet totaled 119,941 vehicles, up 168.7% compared to 3Q17, due to the organic growth of the business and the addition of the Unidas S.A. fleet at the end of 1Q18. In total, the new Company ended 3Q18 with 72,653 vehicles in Fleet Management, 43,363 vehicles for Rent-a-Car and an additional 3,925 vehicles in Rent-a-Car

Franchises (including the franchisee’s own fleet of 1,131 vehicles).

The average age of the operating fleet in Fleet Management at the end of 3Q18 was 16.9 months, a 10.1% decrease year on year, due to the new contracts that became effective in 3Q18. In Rent-a-Car (excluding franchises), there was a 5.3% contraction compared with 3Q17, ending 3Q18 at 7.1 months, due to the new cars added during the period.

The average age of vehicles sold in the Fleet Management segment declined to 28.4 months in 3Q18, 12.1% lower than in 3Q17, due to the average contract duration for this segment. In the Rent-a-Car (excluding franchises) segment, the average age of vehicles sold was down 0.6%, reaching 17.7 months. The Company’s strategy continues to be quicker renewal of the fleets in both segments, in order to save on maintenance and depreciation costs.

22,124 23,184 23,318 23,808

40,319 39,079

100,318

72,653

2,636 3,505 5,070 2,394

4,283 3,029

5,131

43,363

3,505 3,735 2,796 1,529

1,964 2,536

10,166 3,925

28,265 30,424 31,184 27,731

46,566 44,644

119,941 119,941

2013 2014 2015 2016 2017 3Q17 3Q18 3Q18

Operating Deployment Demobilization

Fleet Management Rent-a-Car Rent-a-Car - Franchises

20.2 18.9 18 .8 18.1 17 .5 16.6 16 .9

8 .7 7 .8 7 .5 7 .7 8 .2 8 .1 7 .1

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Fleet Management Rent-a-Car

29.2 28.4

32.3 31.2 30.7 30.2 28 .4

21 .219.7

17.8 17.7 17.0 17.7 17.7

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Fleet Management Rent-a-Car

Opening of the Final Fleet – Consolidated¹

Average Age of the Operating Fleet¹ (Months)

V – FLEET

Average Age of the Vehicles Sold¹ (Months)

+168.7%


For the indicators of the Average Age of the Operating Fleet and Vehicles Sold, Franchise information for the Rent-a-Car segment is not being considered.

11

Investments in the Fleet In 3Q18, net investment in the fleet amounted to R$547.7 million, a 520.3% increase compared to 3Q17. During the quarter, the Company purchased 24,900 vehicles and sold 12,843, equivalent to annual increases of 307.8% and 168.0%, respectively. In 9M18, net investment totaled R$1,022.2 million, an annual increase of 343.1%.

9,950

14 ,177 13 ,068

9 ,122

19 ,747

12 ,557

48 ,325

6 ,106

24 ,900

10 ,522 11 ,565 12 ,729 12,402

16,710

11 ,442

30 ,049

4 ,792

12 ,843

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

Cars Purchased Cars Sold

(572)

2,612 339(3,280)

3,037

1,115

1,314

18,276

12,057

362.6 517.9 509,9

329.0

859.4

595.8

1,991.7

236.5

970.0

218.1 255.4 316.3 352.3 525.2

365.1

969.5

148.2

422.3

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

Cars Acquisition Car Sales Net Revenues

144.5262.5

(23.3)

334.2

230.7193.6

88.3

1,022.2

547.7

Net Fleet Investiment¹ (R$ million)

Net Fleet Investiment¹ (# of vehicles)

(1) 2017: includes Auto Ricci as of 3Q17, and from May 11, 2017 to June 30, 2017 by equity method. 2018: includes Unidas S.A. as of 2Q18, and from March 09, 2018

to March 31, 2018 by equity method.

+520.3%

+343.1%

+1,539.1%

+817.6%

V – FLEET

12

Consolidated Net Revenue

The Company’s consolidated net revenue for 3Q18 was R$832.6 million, 173.0% higher than in 3T17. In 9M18, Net Revenue totaled

R$1,914.2 million, a 163.5% increase compared to 9M17. Both results reflect the expansion in all segments - Fleet Management, Rent-a-Car and Used Cars Sales - in addition to non-organic growth with the addition of revenue from Unidas S.A.

Revenue¹


Var.

3Q18 vs 3Q179M18 9M17

Var.

9M18 vs 9M17

(+) Gross Rental Revenue 451.6 172.5 161.8% 1,040.2 398.0 161.4%

(+) Gross Used Cars Sales 423.3 148.3 185.4% 971.0 365.3 165.8%

(-) Taxes (42.3) (15.8) 167.7% (97.0) (36.8) 163.6%

= Total Net Revenue 832.6 305.0 173.0% 1,914.2 726.5 163.5%

Net Rental Revenue 410.3 156.8 161.7% 944.7 361.4 161.4%

Used Cars Sales Net Revenue 422.3 148.2 185.0% 969.5 365.1 165.5%

322.8 373.8 392.0 402.4 522.9361.4

665.9

156.8 257.1

278.8

153.2218.1

255.4 316.3 352.3

525.2

365.1

969.5

148.2

422.3540.9

629.2708.3 754.7

1,048.1

726.5

1,914.2

305.0

832.6

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

Fleet Management Rent-a-Car + Franchises Used Cars Sales

Consolidated Net Revenue by Segment (R$ million)


+163.5%

+173.0%

VI – FINANCIAL RESULTS

13

Operating Costs

Total operating costs for rentals rose less than net revenue in the comparisons above, and their share fell by 3.2 p.p. YoY in 3Q18

and 2.4 p.p. YoY in 9M18. We would like to stress that such performance has not yet benefited from all the synergy gains still expected from the consolidation with Unidas S.A. Operating costs, excluding depreciation, totaled R$139.3 million in 3Q18, an annual growth of 200.2%, while in 9M18 the total amount was R$302.7 million, a 173.4% increase YoY. These increases, which are greater than those of net revenues by 4.4 p.p., basically reflect the Company's entry in the Rent-a-Car segment, which, intrinsically, has a higher representativeness of lease cash-costs compared to revenues when compared to the Fleet Management business. Depreciation costs, in turn, rose 80.5% in 3Q18 and 118.4% in 9M18, due to the increase in the fleet in the last 12 months. Depreciation of vehicles is calculated as the difference between a car’s purchase price and the Company’s estimate of its selling price at the end of the contract, after deducting a provision for selling costs.

In 3Q18, depreciation of operational vehicles in the Fleet Management segment was 15.8% lower than in 3Q17, at R$3.2 thousand/vehicle. In the Rent-a-Car segment, depreciation of operational vehicles totaled R$2.1 thousand/vehicle, down 25.0% year on year. These decreases in depreciation rates are justified by better purchases of vehicles given the scale of the New Company and are also due to a revaluation of the fleets of Locamerica and Unidas S.A., with a view to equalizing the accounting costs of both companies, adjusting all models to the same value.

Operating Costs¹


Var.

3Q18 vs 3Q179M18 9M17

Var.

9M18 vs 9M17

(-) Maintenance Costs (127.0) (41.2) 208.3% (267.3) (95.7) 179.3%

(-) Personnel Costs (12.3) (5.2) 136.5% (35.4) (15.0) 136.0%

= Cash Cost from Rental Activities (139.3) (46.4) 200.2% (302.7) (110.7) 173.4%

(-) Depreciation of Vehicles (69.5) (38.5) 80.5% (183.7) (84.1) 118.4%

= Total Cost from Rental Activities (208.8) (84.9) 145.9% (486.4) (194.8) 149.7%

Cash Cost as % of Net Rental Revenues 34.0% 29.6% 4.4 p.p. 32.0% 30.6% 1.4 p.p.

Depreciation Cost as % of Net Rental Revenues 16.9% 24.6% (7.7) p.p. 19.4% 23.3% (3.9) p.p.

Total Cost as % of Net Rental Revenues 50.9% 54.1% (3.2) p.p. 51.5% 53.9% (2.4) p.p.

3.7 3.9 3.8 3.8 3.9

3.2 3.2

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

3.22.9 2.8 2.6 2.7

2.1 2.1

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18

Depreciation per Operating Vehicle Fleet Management¹

(R$ thousand/Car)

Depreciation per Operating Vehicle Rent-a-Car + Franchises¹

(R$ thousand/Car)

(1) 2017: includes Auto Ricci as of 3Q17, and from May 11, 2017 to June 30, 2017 by equity method. 2018: includes Unidas S.A. as of 2Q18, and from March 09, 2018 to

March 31, 2018 by equity method.

Change 3Q18 vs

3Q17 -15.8%

Change 3Q18 vs 3Q17 -25.0%


14

Operating Expenses (SG&A)

Recurring operating expenses increased 244.9% in 3Q18 and 213.0% in 9M18 year on year, due to: (i) non-organic expansions, (ii) the entry in the Rent-a-Car segment, which intrinsically requires higher expenses in sales, marketing and personnel and (iii) the organic growth of the business. In addition, the merger with Unidas S.A. gave rise to non-recurring expenses of around R$1.9 million related to marketing expenses for the launch of the Company’s new brand, and expenses with consultants advising on the integration of both companies.

Operating Income

SG&A Expenses¹


Var.

3Q18 vs 3Q179M18 9M17

Var.

9M18 vs 9M17

(-) Selling Expenses (44.5) (11.8) 277.1% (102.7) (31.5) 226.0%

(-) General and Administrative Expenses (46.0) (12.9) 256.6% (109.8) (33.4) 228.7%

(-) Other (Expenses) Operational Revenue 3.4 - - 2.5 0.1 2400.0%

= Total Operating Expenses (87.1) (24.7) 252.6% (210.0) (64.8) 224.1%

(+) Extraordinary Items 1.9 - - 17.2 3.2 437.5%

= Total Recurring Operating Expenses (85.2) (24.7) 244.9% (192.8) (61.6) 213.0%

Total Operating Expenses as % of Net Revenues 10.5% 8.1% 2.4 p.p. 11.0% 8.9% 2.1 p.p.

Total Recurring Operating Expenses as % of Net Revenues 10.2% 8.1% 2.1 p.p. 10.1% 8.5% 1.6 p.p.

EBITDA and EBIT

(R$ million)3Q18¹ 3Q17¹

Var.

3Q18 vs 3Q179M18¹ 9M17¹

Var.

9M18 vs 9M17

(+) Net Income 60.7 15.2 299.3% 126.9 37.5 238.4%

(+) Financial Result 78.8 46.5 69.5% 206.6 100.4 105.8%

(+) Income Taxes 17.4 5.2 234.6% 32.8 10.3 218.4%

(+) Depreciation 77.7 40.3 92.8% 196.4 88.8 121.2%

(-) Equity Income - - - (6.4) (1.9) 236.8%

= EBITDA 234.6 107.2 118.8% 556.3 235.1 136.6%

(+) Extraordinary Items 1.9 - - 17.2 3.2 437.5%

= Recurring EBITDA 236.5 107.2 120.6% 573.5 238.3 140.7%

EBITDA Margin² 57.2% 68.4% (11.2) p.p. 58.9% 65.1% (6.2) p.p.

Recurring EBITDA Margin² 57.6% 68.4% (10.8) p.p. 60.7% 65.9% (5.2) p.p.

= EBIT 156.9 66.9 134.5% 359.9 146.3 146.0%

= Recurring EBIT 158.8 66.9 137.4% 377.1 149.5 152.2%

EBIT Margin² 38.2% 42.7% (4.5) p.p. 38.1% 40.5% (2.4) p.p.

Recurring EBIT Margin² 38.7% 42.7% (4.0) p.p. 39.9% 41.4% (1.5) p.p.


(2) Margins calculated on Rental Revenue.


15

EBITDA

Recurring EBITDA amounted to R$236.5 million in 3Q18 and R$573.5 million in 9M18, with margins of 57.6% and 60.7% respectively, on net rental revenue. The lower margins mainly reflect the Company’s entry into the Rent-a-Car segment, which has intrinsically lower profitability margins than Fleet Management, in addition to the smaller margin of the Used Cars segment. Moreover, it is important to stress that the synergies from the consolidation with Unidas are yet to be fully captured.

The above chart shows an apparent fall in EBITDA margins for rentals in the consolidated accounts. This is because in 3Q17 Locamerica was only in the Fleet Management business, while in 3Q18, with the consolidation of the margins of the New Company, the Fleet Management and the Rent-a-Car businesses are combined. Thus, to make it easier for investors to analyze the Company and to show a real comparison between the EBITDA margins, we will split them into segments.

EBITDA margin for Fleet Management remained virtually stable in 3Q18, even with the acquisition of a client with a significant fleet in 3Q18, partially offset by the acquisition of clients with smaller operations. In 9M18, EBITDA margin was up 1.3 p.p. year on year, in line with the Company's focus on profitability.

-38.5 -40.8 -32.8 -26.8 38.0 22.5 48.0 20.0 19.9

106.1

64.6182.4

222.6 240.5 260.6

317.1

230.8

434.4

102.2

167.0

158.9

196.8 222.7

248.8

345.1

238.3

573.5

107.2

236.5

49.2%52.6%

56.8%61.8%

66.0% 65.9%60.7%

68.4%

57.6%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

-40.0

60.0

160.0

260.0

360.0

460.0

560.0

660.0

Used Cars Sales Rent-a-Car + Franchises Fleet Management Recurring Rental Margin

2013 2014 2015 2016 2017 9M17 9M18 3T17 3T18

Recurring EBITDA Margin 2013 2014 2015 2016 2017 9M17 9M18 Var. 3Q17 3Q18 Var.

Fleet Management¹ 56.5% 59.6% 61.4% 64.8% 60.7% 63.9% 65.2% 1.3 p.p. 65.2% 65.0% (0.2) p.p.

Rent-a-Car + Franchises¹ - - - - - - 38.1% - - 42.2% -

Rental¹ 56.5% 59.6% 61.4% 64.8% 60.7% 63.9% 57.2% (6.7) p.p. 65.2% 56.5% (8.7) p.p.

Used Cars Sales¹ (10.8)% (10.1)% (5.6)% (3.3)% 5.3% 2.1% 3.4% 1.3 p.p. 3.4% 1.2% (2.2) p.p.

= Consolidated EBITDA Margin¹² 49.2% 52.6% 56.8% 61.8% 66.0% 65.9% 60.7% (5.2) p.p. 68.4% 57.6% (10.7) p.p.

EBITDA and Recurring EBITDA Margin¹² (R$ million)



+140.7%


+120.6%

16

EBITDA margin for the Used Cars segment was 1.2% in 3Q18 and contracted 2.2 p.p., reflecting the smaller gross margin in the

quarter, as previously explained. In 9M18, EBITDA margin stood at 3.4%, up 1.3 p.p. year on year. In the Rent-a-Car division, EBITDA margin was 42.2%, resulting from an increase of 3.1 p.p. over the margin reported by Unidas S.A. in 3Q17. This result is due to the strong market demand, coupled with the adoption of rates that are sustainable for the business, investment in higher value-added fleets and focus on growth without affecting the quality of the client mix.

In the following table, we present the track record of Unidas’s EBITDA Margin for the Rent-a-Car (including Franchises) segment for the entire period, as the Company only began operating in this segment after 1Q18.

EBIT

Recurring consolidated EBIT totaled R$158.8 million in 3Q18 and R$377.1 million in 9M18, with margins of 38.7% and 39.9%, respectively. Year on year, EBIT margin for 3Q18 was down 4.0 p.p., while for 9M18 it declined 1.5 p.p.. Such performance reflects the Company’s entry into the Rent-a-Car segment, which has intrinsically lower margins of profitability when compared to Fleet Management and the smaller margin of the Used Cars segment.

Recurring EBITDA Margin 2013 2014 2015 2016 2017 9M17 9M18 Var. 3Q17 3Q18 Var.

Rent-a-Car + Franchises² 35.0% 39.2% 37.6% 34.0% 39.8% 38.7% 40.2% 1.5 p.p. 39.1% 42.2% 3.1 p.p.

90.5112.7

124.3150.3

216.8

149.5

377.1

66.9

158.8

28.0% 30.1% 31.7%37.4%

41.5% 41.4% 39.9% 42.7%38.7%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

Consolidated EBIT Recurring Rental Margin

Recurring Consolidated EBIT and EBIT Margin¹² (R$ million)

+152.2%

+137.4%




17

In the following table, we present the track record of Unidas’s EBIT Margin for the Rent-a-Car (including Franchises) segment for the entire period, as the Company only began operating in this segment after 1Q18. We would like to highlight the 2.6 p.p. growth of EBIT margin in 3Q18 year on year.

Net Financial Expenses

Net financial expenses totaled R$78.8 million in 3Q18, a 69.5% increase compared to the same period of 2017. The reason for the change is the increase in net debt resulting from financing fleet expansion and the payment of R$398 million related to the consolidation with Unidas S.A., partially offset by the fall in the base interest rate during the quarter.

In 3Q18, the Company had an extraordinary financial income of R$2.8 million due to the mark-to-market from swap operations. Excluding this effect, net financial expenses amounted to R$81.6 million, increasing 108.7% year on year. It is important to stress that, even without the positive impact of the non-recurring financial income, net financial income on net revenue ratio for the rental segments was down 5.0 p.p. in 3Q18 and decreased 3.0 p.p. in 9M18, due to lower debt costs of the Company's last debenture issues, but still without benefiting from all expected synergy gains after the entire debt refinancing at these lower costs.

Net Income

Recurring Net Income in 3Q18 was R$60.1 million and rose 199.0% year on year, which led the Company to post its largest net income ever for a quarter. The total aggregate for the year was R$134.5 million, a rise of 198.2%. In both cases, Net Income grew more than Net Revenue. As a result, recurring net margin has also renewed its record levels, increasing 2.2 p.p. in 3Q18 and 1.9 p.p. in 9M18 year on year.

Recurring EBIT Margin 2013 2014 2015 2016 2017 9M17 9M18 Var. 3Q17 3Q18 Var.

Fleet Management¹ 28.0% 30.1% 31.7% 37.4% 41.5% 41.4% 44.7% 3.3 p.p. 42.7% 44.2% 1.5 p.p.

Rent-a-Car + Franchises¹ - - - - - - 28.6% - - 29.5% -

= Consolidated EBIT Margin¹² 28.0% 30.1% 31.7% 37.4% 41.5% 41.4% 39.9% (1.5) p.p. 42.7% 38.7% (4.0) p.p.

Recurring EBIT Margin 2013 2014 2015 2016 2017 9M17 9M18 Var. 3Q17 3Q18 Var.

Rent-a-Car + Franchises¹² 9.4% 19.2% 19.2% 16.5% 23.3% 23.3% 29.0% 5.7 p.p. 26.9% 29.5% 2.6 p.p.

Net Financial Expenses


Var.

3Q18 vs 3Q179M18¹ 9M17¹

Var.

9M18 vs 9M17

(-) Financial Expenses (91.1) (53.6) 70.0% (241.7) (119.3) 102.6%

(+) Financial Income 12.3 7.1 73.2% 35.1 18.9 85.7%

= Financial Result (78.8) (46.5) 69.5% (206.6) (100.4) 105.8%

(+) Extraordinary Items (2.8) 7.4 (137.8)% 4.0 11.2 (64.3)%

= Recurring Financial Result (81.6) (39.1) 108.7% (202.6) (89.2) 1.3 p.p.

Financial Result as % of Net Revenues² 19.2% 29.7% (10.5) p.p. 21.9% 26.3% (4.4) p.p.

Recurring Financial Result as % of Net Revenues² 19.9% 24.9% (5.0) p.p. 21.4% 24.4% (3.0) p.p.

Net Income


Var.

2Q18 vs 2Q179M18¹ 9M17¹

Var.

9M18 vs 9M17

(+) Reported Net Income 60.7 15.2 299.3% 126.9 37.5 238.4%

(-) Equity Income - - - (6.4) (1.9) 236.8%

(+) Extraordinary Items, net of Taxes (0.6) 4.9 (112.2)% 14.0 9.5 47.4%

= Recurring Net Income 60.1 20.1 199.0% 134.5 45.1 198.2%

Net Margin² 14.8% 9.7% 5.1 p.p. 13.4% 10.9% 2.5 p.p.

Recurring Net Margin² 14.6% 12.4% 2.2 p.p. 14.2% 12.3% 1.9 p.p.


FINANCIAL RESULTS



18

Profitability Ratios The Company’s annualized ROE achieved a new record, standing at 22.8% in 3Q18. ROIC generated in the same period stood at 12.5%, consolidating, for yet another quarter, the profitability levels expected by the Company, even without capturing the several synergies to be generated by the consolidation with Unidas S.A.

16.224.8 18.6

28.9

67.7

45.1

134.5

20.1

60.1

5.0% 6.6% 4.7%7.2%

13.0% 12.3% 14.2% 12.4%14.6%

-60 .0 %

-50 .0 %

-40 .0 %

-30 .0 %

-20 .0 %

-10 .0 %

0.0%

10 .0 %

0

20

40

60

80

10 0

12 0

14 0

16 0

18 0

20 0

2013 2014 2015 2016 2017 9M17 9M18 3Q17 3Q18

Net Income Net Margin

5.3%

8.1%

5.8%

9.1%

19.0%

22.8%

2013 2014 2015 2016 2017 3Q18

Annualized

8.9%

10.7% 10.3%

12.3%12.9% 12.5%

2013 2014 2015 2016 2017 3Q18

Annualized

Recurring Net Income¹² (R$ million)

+198.2%

+199.0%



(3) The annualized ROE is calculated using 3Q18 recurring net income divided by the monthly average of shareholders' equity adjusted for the deduction of the goodwill generated

by the mergers with Auto Ricci and Unidas S.A. and the addition of the equity valuation adjustment (Tangible Shareholders' Equity).

Record


Annualized ROE ¹/³ Annualized ROIC ¹

Change (2013-9M18) +3.6 p.p.

Record

19

As a result, the spread between ROIC and the cost of debt was the highest ever achieved in the history of the Company, standing at 5.8 p.p. It is important to stress that, in the next few quarters, the spread will still benefit from several synergy gains, by the hedges against our net debt and, finally, by the expectation of reducing the cost of debt with refinancing at lower rates.

10.7%10.3%

12.3%12.9%

12.4%

10.8%

12.4% 12.5%

10.5%

12.3%

13.2%

10.0%

7.4%6.9% 6.9% 6.7%

2014 2015 2016 2017 1Q18Locamerica

1Q18Combined

2Q18Consolidated

3Q18Consolidated

ROIC Cost Net of Taxes

0.2 p.p. -2.0 p.p. -0.9 p.p. 2.9 p.p.

Spread

5.1 p.p. 3.9 p.p. 5.5 p.p. 5.8 p.p.


Spread (ROIC less debt cost after taxes) ¹

Record


20

Indebtedness

At the end of 3Q18, 91.8% of the Company’s consolidated gross debt was maturing in the long term, thanks to our conservative policy of extending our debt profile. We would also like to stress our cash position of R$1,156.8 million, enough to cover 100% of the principal of the debt maturing up to 2020, and 68.2% up to 2021. In 3Q18, the Company held two new debenture issues, the 17th issue of Unidas, at a cost of 113.0% of CDI and a term of 5 years, and the 12th issue of Unidas S.A., at a cost of 110.6% of CDI and a term of 5 years in the 1st series and of IPCA + 7.3% with a term of 7 years in the 2nd series. In 3Q18, the 7th Promissory Note of Unidas S.A. was also prepaid.

Consolidated Leverage Ratios

Based on consolidated debt and the combined ratios for the last 12 months, at the end of 3Q18, the Net Debt/EBITDA ratio was 3.02x, higher than the level of a year earlier. However, this ratio is lower than the level of 3.21x reported in 1Q18 and of 3.06x in 2T18, even with the strong volume of vehicle acquisitions in this quarter. This performance was due to the strong EBITDA generation in 3Q18. The coverage ratio, or EBITDA/Financial Income, was 2.90x.

Debt


Var.

3Q18 vs 3Q172Q18

Var.

3Q18 vs 2Q18

Gross Debt 3,985.8 1,261.0 216.1% 3,388.0 17.6%

Short Term Debt (%) 8.2% 16.5% (8.3) p.p. 9.7% (1.5) p.p.

Long Term Debt (%) 91.8% 83.5% 8.3 p.p. 90.3% 1.5 p.p.

Cash and Cash Equivalents 1,156.8 299.5 286.2% 600.5 92.6%

Net debt 2,829.0 961.5 194.2% 2,787.5 1.5%

1,156.8

206.3 187.7

340.5

963.0

1,285.0

783.0

220.4

Cash 2018 2019 2020 2021 2022 2023 2024

Ratios 2013 2014 2015 2016 2017 9M17 9M18

Net Debt / Fleet Value 62.6% 69.3% 59.8% 66.3% 63.1% 62.2% 59.9%

Net Debt / Recurring EBITDA 3.08x 3.35x 2.85x 2.52x 2.51x 2.43x 3.02x

Net Debt / Equity 1.65x 2.18x 1.95x 2.09x 2.14x 2.09x 1.94x

Cash / Short Term Debt - - - - - - 3.32x

Recurring EBITDA / Net Financial Expenses 2.41x 2.34x 2.19x 2.17x 2.68x 2.48x 2.90x

Amortization Schedule on September 30, 2018¹ (R$ million)

Total to be amortized by 2021: R$1,697.4 million Cash addresses 68.2%


Values adjusted for non-recurring items of the consolidations with Auto Ricci and Unidas S.A.. ROIC calculated using the effective contribution rate for each year.


21

Breakdown of Debt The following table shows key details of the Company’s debt at the end of 3Q18:

Debt (September 30, 2018) Issuance

Date

Average

Cost 2018 2019 2020 2021 2022 2023 2024 2025 Total

Companhia de Locação das Américas

8th debentures - 2nd series 10/29/13 CDI + 1.75% 25.4 24.9 24.9 - - - - - 75.2

12th debentures - single series 06/23/17 CDI + 2.20% - - 50.0 50.0 50.0 - - - 150.0

13th debentures - 2nd series 08/28/17 CDI + 1.40% - - - 125.0 125.0 - - - 250.0

14th debentures - single series 11/17/17 CDI + 1.20% - 25.0 25.0 25.0 25.0 - - - 100.0

15th debentures - 1st series 02/19/18 CDI + 1.40% - - - 137.1 137.1 137.1 - - 411.4

15th debentures - 2nd series 02/19/20 CDI + 1.15% - - - 88.6 - - - - 88.6

16th debentures - single series 04/27/18 119% do CDI - - - - 116.7 116.7 116.7 - 350.0

17th debentures - single series 09/27/18 113% do CDI - - - - 200.0 200.0 - - 400.0

2nd promissory notes - single series 11/29/17 CDI + 1.40% - - - 118.0 - - - - 118.0

Finame - 6.00% 1.7 6.6 6.6 6.6 6.6 6.6 4.6 - 39.5

Leasing - 13.79% 0.1 0.2 0.1 - - - - - 0.4

CCB Caixa - CDI + 2.67% 16.7 - - - - - - - 16.7

Ricci

3rd debentures - single series 06/22/17 CDI + 2.10% 38.7 55.7 55.7 55.7 98.2 - - - 304.1

Unidas S.A.

7th debentures - 2nd series 06/20/16 CDI + 2.94% - 35.0 - - - - - - 35.0

9th debentures - single series 04/07/17 CDI + 2.70% - - 150.0 150.0 - - - - 300.0

10th debentures - 1st series 09/29/17 CDI + 1.20% - 40.0 40.0 - - - - - 80.0

10th debentures - 2nd series 09/29/17 CDI + 1.60% - - - 210.0 210.0 - - - 420.0

11th debentures - single series 03/29/18 117.5% do CDI - - - - 250.0 250.0 - - 500.0

12th debentures - 1st series 09/15/18 110.6% do CDI - - - - 75.0 75.0 - - 150.0

12th debentures - 2nd series 09/15/18 IPCA + 7.30% - - - - - - 50.0 50.0 100.0

Leasing - CDI + 4.33% 50.0 3.3 - - - - - - 53.3

Incurred net interests 31.9 31.9

Total SWAP (MtM & Accrual) 11.7 11.7

Cash and equivalents (1,156.8) (1,156.8)

Net Debt (980.5) 190.8 352.3 966.1 1293.6 785.4 171.3 50.0 2,829.0


22

Dividends and interest on equity (JCP) On September 19, 2018, the Board of Directors approved the payment of dividends for a gross amount of twenty-four million, nine hundred and eighty-nine thousand, eight hundred and thirty-four Reais and one cent (R$24,989,834.01), equivalent to R$0.2159091620 per share. Payment was made to shareholders on October 5, 2018, in proportion to their share of the Company’s issued capital, using as its calculation basis their shareholding position on September 24, 2018.

Approval DateTotal Ammount Declared

(R$ Million)

Value per Share

(R$)Date of Shareholding Position

March 23, 2017 5.609 0.0877435 March 29, 2017

June 22, 2017 5.340 0.0661356 June 27, 2017

September 21, 2017 5.420 0.0670874 September 26, 2017

December 18, 2017 5.520 0.0681917 December 21, 2017

January 3, 2018 17.501 0.2161837 January 8, 2018

March 26, 2018 8.090 0.0700350 March 29, 2018

June 22, 2018 25.213 0.2180625 June 26, 2018

September 19, 2018 24.990 0.2159092 September 24, 2018


23

Shareholding Structure Currently the Company has 116,863,827 shares issued, with a free float accounting for 35.57% of the total shares.

LCAM3 Performance Unidas shares (LCAM3) closed the trading session on 11/06/2018 at R$31.00, a 61.5% appreciation in 2018, while the IBOV index rose 16.1% and the Small Cap index rose 3.0% over the same period. The average daily trading volume (ADTV) of 2018 up to the trading session of 11/06/2018 amounted to R$3.5 million/day. Currently, Unidas has ten equity research firms coverage – Banco do Brasil, Bradesco BBI, BTG Pactual, Coinvalores, Eleven Financial, Itaú BBA, JP Morgan, Safra, Santander e XP.

Unidas S.A.

Luis Fernando

Memoria Porto

13.09%

Sérgio

Augusto

Guerra de

Resende

13.09%

RCC

Participações

Sociais LTDA e

Dirley Ricci

12.51%

Enterprise

10.75%

Principal

14.04%

Free Float

35.57%

100.0%Shareholders from

Companhia de Locação das Américas

Shareholders from Unidas S.A.

Subtitles:

Control Group 63.47%

dec-17 jan-18 feb-18 mar-18 apr-18 may-18 jun-18 jul-18 aug-18 sep-18 oct-18 nov-18

LCAM3: +61.5%

IBOV: +16.1%

SMLL: +3.0%

ADTV 2018 YTD:R$ 3.5 MM

SMLL: +3.0%

Current Shareholding Structure

9/30/2018 – Includes Treasury Shares

VII – CAPITAL MARKETS

LCAM3 Performance in 2018

(1) YTD: Covers the period from December 29, 2017 to November 06, 2018

24

3Q18 Results Presentation (Webcast)

Teleconference in Portuguese (Simultaneous Translation) November 07, 2018

7 a.m. – New York time 10 a.m. – Brasília time

Telephone: + 55 (11) 3193-1001 + 55 (11) 2820-4001

Access code: Unidas Results Presentation (webcast): ri.unidas.com.br

Investor Relations Department Contacts:

Jose Antonio de Sousa Azevedo – New Business and Investor Relations Officer Rodrigo Faria – Investor Relations Manager

Larissa Araújo – Senior Investor Relations Analyst Rodrigo Finotto Perez – Investor Relations Analyst

Phone: +55 (11) 3155-5826 / (11) 3155-4987 / (11) 3155-5892

E-mail: [email protected]

About Unidas – We are Brazil’s leading company in the Fleet Management segment, with approximately 73 thousand vehicles and number three in the Rent-a-Car segment, with approximately 47 thousand vehicles. Our strong competitive position, focus and scale will allow us to continue consolidating the market via organic growth. We have ample geographical coverage, with a presence in all Brazilian states. The Company offers solutions for the entire client cycle, both in the Fleet Management and the Rent-a-Car segments (Unidas 360° platform), in addition to the strong presence and expertise in the retirement of vehicles previously used in its operations.

Legal Notice - Statements contained in this document related to business prospects, forecasts of operating and financial results, and growth of Locamerica are merely projections, and as such are exclusively based on management’s expectations of future business. These expectations depend substantially on market conditions and the performance of the Brazilian economy, the sector and the international markets, and they are accordingly subject to change without notice.

mailto:[email protected]

25

Operating Data¹

Operating Data 2016 2017 Change 9M17 9M18 Change 3Q17 3Q18 Change

Total Fleet at the End of the Period 27,731 46,566 67.9% 44,644 118,810 166.1% 44,644 118,810 166.1%

Fleet being implemented 2,394 4,283 78.9% 3,029 9,457 212.2% 3,029 9,457 212.2%

Demobilized fleet 1,529 1,964 28.4% 2,536 10,166 300.9% 2,536 10,166 300.9%

Operating fleet 23,808 40,319 69.4% 39,079 99,187 153.8% 39,079 99,187 153.8%

Average Operating Fleet 23,905 32,000 33.9% 29,382 86,492 194.4% 39,584 97,246 145.7%

Fleet Management 23,905 32,000 33.9% 29,382 56,236 91.4% 39,584 64,378 62.6%

Rent-a-Car - - - 27,902 - - 30,577 -

Rent-a-Car + Franchises - - - 2,354 - - 2,291 -

Average Rented Fleet 23,147 31,054 34.2% 28,491 79,329 178.4% 38,455 88,985 131.4%


Rent-a-Car - - - 21,749 - - 23,446 -

Rent-a-Car + Franchises - - - 2,354 - - 2,291 -

Average Age of Operating Fleet (months) 18.6 18.1 (2.7)% 19.3 13.9 (28.1)% 18.8 13.7 (27.2)%

Fleet Management 18.6 18.1 (2.7)% 19.3 17.0 (12.0)% 18.8 16.9 (10.1)%

Rent-a-Car - - - - 7.6 - - 7.1 -

Rent-a-Car + Franchises - - - - 11.1 - - 11.4 -

Number of Daily Rentals (thousand) 8,335 11,179 34.1% 7,693 18,841 144.9% 3,461 7,822 126.0%


Rent-a-Car - - - 3,947 - - 2,138 -

Average Ticket (R$)

Fleet Management (monthly) 1,597 1,546 (3.2)% 1,564 1,470 (6.0)% 1,495 1,492 (0.2)%

Rent-a-Car (daily rate)¹ - - - 72.6 - - 74.5 -

Occupancy Rate

Fleet Management 96.8% 97.0% 0,2 p.p. 96.9% 98.2% 1,3 p.p. 97.1% 98.2% 1,1 p.p.

Rent-a-Car¹ - - - - 78.1% - - 76.7% -

Depreciation (R$ thousand)

Fleet Management 4.0 3.8 (5.0)% 3.8 3.4 (11.7)% 3.8 3.2 (15.8)%

Rent-a-Car (excluding Franchises) - - - - 2.1 - - 2.1 -

Average Fleet Value (R$ million) 968.1 1,212.2 25.2% 1,106.3 3,602.4 225.6% 1,261.8 4,463.1 253.7%

Number of Cars Bought 9,122 19,747 116.5% 12,557 48,325 284.8% 6,106 24,900 307.8%


Rent-a-Car - - - - 26,977 - - 14,110 -

Rent-a-Car + Franchises - - - - 906 - - 547 -

Average Purchase Price (R$ thousand) 36.1 43.5 20.5% 41.0 38.1 (6.9)% 38.7 40.7 5.1%

Fleet Management 36.1 43.5 20.5% 41.0 39.9 (2.5)% 38.7 40.6 4.9%

Rent-a-Car - - - - 36.9 - - 40.9 -


Number of Cars Sold 12,402 16,710 34.7% 11,442 30,049 162.6% 4,792 12,843 168.0%


Rent-a-Car - - - - 10,501 - - 5,706 -

Rent-a-Car + Franchises - - - - 721 - - 352 -

Average Selling Price (R$ thousand) 28.4 31.4 10.6% 31.9 32.3 1.1% 30.9 32.9 6.3%

Fleet Management 28.4 31.4 10.6% 31.9 30.4 (4.9)% 30.9 30.4 (1.6)%

Rent-a-Car - - - - 35.8 - - 36.0 -


Number of Employees 589 801 36.0% 616 2,405 290.4% 616 2,405 290.4%

Fleet per Employee 47.1 58.1 23.4% 72.5 49.4 (31.8)% 72.5 49.4 (31.8)%


(2) Excluding Franchisee's Fleet of 1,131 vehicles.

26

Consolidated Income (R$ thousand) 3Q17 3Q18 Change 9M17 9M18 Change

Gross Rental Revenue 172,512 283,170 64.1% 397,969 733,690 84.4%

Gross Revenue from Car Sales for renewing the fleet 148,266 206,959 39.6% 365,290 573,289 56.9%

Total Gross Revenue 320,778 490,129 52.8% 763,259 1,306,979 71.2%

Rental Taxes (15,693) (26,103) 66.3% (32,844) (67,835) 106.5%

Tax from Car Sales for renewing the fleet (50) (306) 518.4% (165) (562) 240.0%

Total Taxes (15,743) (26,409) 67.8% (33,010) (68,397) 107.2%

Net Rental Revenue 156,819 257,067 63.9% 365,125 665,855 82.4%

Net Revenue from Car Sales for renewing the fleet 148,216 206,653 39.4% 365,125 572,727 56.9%

Total Net Revenue 305,035 463,720 52.0% 730,249 1,238,582 69.6%

Rental Costs (ex-depreciation) (46,391) (67,827) 46.2% (110,686) (174,012) 57.2%

Costs from Car Sales for renewing the fleet (ex-depreciation)² (128,449) (185,642) 44.5% (320,504) (508,017) 58.5%

Total Costs (ex-depreciation) (174,840) (253,469) 45.0% (431,190) (682,029) 58.2%

Gross profit 130,195 210,251 61.5% 299,059 556,553 86.1%

Car rental (ex-depreciation) operating expenses (SG&A) (8,237) (22,542) 173.7% (23,656) (57,718) 144.0%

Car sales operating expenses (SG&A) for renewing the fleet (ex-depreciation)

(14,754) (16,192) 9.7% (37,107) (46,082) 24.2%

Total Operating Expenses (SG&A) (22,991) (38,734) 68.5% (60,763) (103,799) 70.8%

Depreciation (40,304) (57,933) 43.7% (88,796) (155,363) 75.0%

Recurring EBIT 66,900 113,584 70% 149,500 297,390 98.9%

Net financial expenses (39,180) (55,932) 42.8% (89,147) (152,049) 70.6%

Recurring EBIT 27,720 57,652 108.0% 60,353 145,341 140.8%

Taxes (6,996) (12,840) 83.5% (12,959) (29,822) 130.1%

Recurring Net Income 20,724 44,812 116.2% 47,394 115,519 143.7%

Net Margin on total net sales revenue 6.8% 9.7% 2.9 p.p. 6.5% 9.3% 2.8 p.p.

Recurring EBITDA 107,204 171,517 60.0% 238,296 452,753 90.0%

EBITDA Margin on total net sales revenue 35.1% 37.0% 1.9 p.p. 32.6% 36.6% 4.0 p.p.

Operating Data 3Q17 3Q18 Change 9M17 9M18 Change

Average Rented Fleet 38,455 63,247 64.5% 28,491 55,226 93.8%

Average Operating Fleet 39,584 64,378 62.6% 29,382 56,236 91.4%

Fleet at the End of the Period 44,644 72,653 62.7% 44,644 72,653 62.7%

Average Age of Operating Fleet (in months) 18.8 16.9 (10.1)% 19.3 17.0 (11.9)%

Number of Daily Rentals (in thousands) 3,461 5,684 64.2% 7,693 14,894 93.6%

Average Monthly Rate per Car (R$) 1,495 1,492 (0.2)% 1,564 1,470 (6.0)%

Annualized Average Depreciation per Car (R$ thousand) 3.8 3.2 (15.8)% 3.8 3.4 (11.7)%

Occupancy Rate 97.1% 98.2% 1.1% 96.9% 98.2% 1.3%

Number of Cars Bought 6,106 10,243 67.8% 12,557 20,442 62.8%

Number of Cars Sold 4,792 6,785 41.6% 11,442 18,827 64.5%

Average Age of Cars Sold (in months) 32.3 28.4 (12.0)% 30.0 29.8 (0.6)%

Average Fleet Value (R$ million) 1,546 2,883 86.4% 1,322 2,755 108.3%

Average Value per car in the period (R$ thousand) 34.6 39.7 14.6% 37.4 38.1 1.8%

Fleet Management (R$ million)¹


(2) Considers vehicle’s preparation for sale

27

Consolidated Income (R$ thousand) 3Q17 3Q18 Change 9M17 9M18 Change

Gross Rental Revenue 126,199 168,381 33.4% 362,943 462,812 27.5%

Gross Revenue from Car Sales for renewing the fleet 172,204 216,375 25.7% 466,838 561,180 20.2%

Total Gross Revenue 298,403 384,756 28.9% 829,781 1,023,992 23.4%

Rental Taxes (11,125) (15,208) 36.7% (31,170) (41,029) 31.6%

Tax from Car Sales for renewing the fleet (219) (690) 215.1% (609) (1,128) 85.2%

Total Taxes (11,344) (15,898) 40.1% (31,779) (42,157) 32.7%

Net Rental Revenue 115,074 153,173 33.1% 331,773 421,783 27.1%

Net Revenue from Car Sales for renewing the fleet 171,985 215,685 25.4% 466,229 560,052 20.1%

Total Net Revenue 287,059 368,858 28.5% 798,002 981,835 23.0%

Rental Costs (ex-depreciation) (48,971) (62,914) 28.5% (132,288) (177,251) 34.0%

Costs from Car Sales for renewing the fleet (ex-depreciation)² (158,597) (202,754) 27.8% (435,243) (509,064) 17.0%

Total Costs (ex-depreciation) (207,568) (265,668) 28.0% (567,531) (686,315) 20.9%

Gross profit 79,491 103,190 29.8% 230,471 295,520 28.2%

Car rental (ex-depreciation) operating expenses (SG&A) (21,051) (25,722) 22.2% (71,036) (74,858) 5.4%

Car sales operating expenses (SG&A) for renewing the fleet (ex-depreciation)

(5,116) (12,525) 144.8% (15,371) (29,624) 92.7%

Total Operating Expenses (SG&A) (26,167) (38,247) 46.2% (86,407) (104,482) 20.9%

Depreciation (22,351) (19,756) (11.6)% (66,717) (68,533) 2.7%

Recurring EBIT 30,973 45,188 45.9% 77,347 122,505 58.4%

Net financial expenses (23,113) (25,623) 10.9% (74,294) (73,896) (0.5)%

Recurring EBIT 7,860 19,565 (148.9)% 3,053 48,609 (1492.0)%

Taxes (2,617) (4,255) 62.6% (1,033) (16,422) 1489.3%

Recurring Net Income 5,243 15,310 (192.0)% 2,020 32,187 (1493.3)%

Net Margin on total net sales revenue 1.8% 4.2% 2,3 p.p. 0.3% 3.3% 3,0 p.p.

Recurring EBITDA 53,324 64,943 21.8% 144,064 191,038 32.6%

EBITDA Margin on total net sales revenue 18.6% 17.6% 1,0 p.p. 18.1% 19.5% 1,4 p.p.

Operating Data 3Q17 3Q18 Change 9M17 9M18 Change

Average Rented Fleet (Own Chain) 18,342 23,446 27.8% 17,283 21,816 26.2%

Average Rented Fleet (Franchises) 2,663 2,291 (14.0)% 2,593 2,448 (5.6)%

Average Operating Fleet (Own Chain) 21,569 30,577 41.8% 20,792 27,351 31.5%

Average Operating Fleet (Franchises) 2,663 2,291 (14.0)% 2,593 2,448 (5.6)%

Fleet at the End of the Period (Own Chain) 28,895 43,363 50.1% 28,895 43,363 50.1%

Fleet at the End of the Period (Franchises) 3,159 2,794 (11.6)% 3,159 2,794 (11.6)%

Average Age of Operating Fleet (Own Chain, in months) 7.5 7.1 (5.3)% 8.0 7.7 (3.0)%

Average Age of Operating Fleet (Franchises, in months) 9.4 11.4 21.5% 10.1 10.8 6.9%

Number of Daily Rentals (Own Chain, in thousands) 1,669 2,138 28.1% 4,677 5,912 26.4%

Average Daily Rental per Car (Own Chain, R$) 68.6 74.5 8.6% 70.7 73.2 3.5%

Annualized Average Depreciation per Car (including Franchises, R$ thousand)

2.8 2.1 (25.0)% 3.0 2.3 (23.2)%

Occupancy Rate (Own Chain) 85.0% 76.7% 8,4 p.p. 83.1% 79.8% (3.4) p.p.

Number of Cars Bought (Own Chain) 6,186 14,110 128.1% 9,637 14,562 51.1%

Number of Cars Bought (Franchises) 501 573 14.4% 1,015 570 (43.8)%

Number of Cars Sold (Own Chain) 4,843 5,706 17.8% 8,812 9,138 3.7%

Number of Cars Sold (Franchises) 456 352 (22.8)% 952 752 (21.0)%

Average Age of Cars Sold (Own Chain, in months) 17.8 17.7 (1.0)% 20.5 17.4 (15.1)%

Average Fleet Value (including Franchises, R$ million) 1,084.4 1,828.0 68.6% 1,021.8 1,511.9 48.0%

Average Value per car in the period (including Franchises, R$ thousand) 33.8 39.6 17.1% 33.0 42.0 27.0%

Rent-a-Car (including Franchises, R$ million)

(1) Here is the track record of Unidas’s EBITDA Margin for the Rent-a-Car (including Franchises) segment for the entire period, as Locamerica did not

operate in this segment up to 1Q18.

(2) Considers vehicle’s preparation for sale

28

Income Statement (R$ million)

Statement of income 2016 2017 Change 9M17 9M18 Change 3Q17 3Q18 Change

Car rental 443,717 575,932 29.8% 397,969 1,040,182 161.4% 172,512 451,551 161.8%

Car sales 352,302 525,409 49.1% 365,290 971,018 165.8% 148,266 423,334 185.5%

Sales taxes (41,305) (53,290) 29.0% (36,783) (97,035) 163.8% (15,743) (42,307) 168.7%

Consolidated Net Revenue 754,714 1,048,051 38.9% 726,476 1,914,165 163.5% 305,035 832,578 172.9%

Maintenance costs (112,154) (157,198) 40.2% (110,686) (302,635) 173.4% (46,391) (139,297) 200.3%

Depreciation costs (95,096) (121,629) 27.9% (84,110) (183,736) 118.4% (38,531) (69,532) 80.5%

Cost of vehicles sold (328,547) (460,359) 40.1% (320,504) (857,880) 167.7% (128,449) (379,840) 195.7%

Costs from vehicle rental and sales (535,797) (739,186) 38.0% (515,300) (1,344,251) 160.9% (213,371) (588,669) 175.9%

Gross Profit 218,917 308,865 41.1% 211,176 569,914 169.9% 91,664 243,909 166.1%

Sales (38,273) (44,633) 16.6% (31,543) (102,706) 225.6% (11,847) (44,467) 275.3%

General and Administrative (27,438) (43,860) 59.9% (28,702) (97,171) 238.6% (11,136) (37,847) 239.9%

Depreciation (3,405) (6,605) 94.0% (4,711) (12,638) 168.3% (1,745) (8,157) 367.4%

Other Operating Expenses/Revenues 524 (177) (133.8)% 50 2,472 4844.0% (8) 3,445 (43162.5)%

Operating expenses 150,325 213,590 42.1% (64,906) (210,043) 223.6% (24,736) (87,026) 251.8%

Operating Income (EBIT) 150,325 213,590 42.1% 146,270 359,871 146.0% 66,928 156,883 134.4%

Financial Expenses (146,108) (160,431) 9.8% (119,259) (241,690) 102.7% (53,626) (91,056) 69.8%

Financial Income 31,604 24,770 (21.6)% 18,869 35,075 85.9% 7,080 12,274 73.4%

Net Financial Expenses (114,504) (135,661) 18.5% (100,390) (206,615) 105.8% (46,546) (78,782) 69.3%

Equity Method -- -- -- 1,932 6,437 233.2% -- -- --

Earnings Before Taxes (EBT) 35,821 77,929 117.6% 47,812 159,693 234.0% 20,382 78,101 283.2%

Current Tax (2,701) (9,707) 259.4% (5,303) (14,385) 171.3% 383 (9,037) (2486.4)%

Deferred Tax (4,213) (9,557) 126.8% (4,963) (18,382) 270.4% (5,527) (8,357) 49.3%

Income Tax and Social Contribution Tax (6,914) (19,264) 178.6% (10,266) (32,767) 219.2% (5,144) (17,394) 238.1%

Extraordinary Items, net of IT/SC -- 9,038 -- 9,536 13,985 46.7% 4,861 (584) (112.0)%

Recurring Net Income 28,907 67,703 134.2% 45,150 134,474 197.8% 20,099 60,123 199.1%

Recurring EBITDA 248,826 345,029 38.7% 238,296 573,433 140.6% 107,204 236,461 120.6%

29

Consolidated Balance Sheets (R$ thousand)

ASSETS 2014 2015 2016 2017 3Q18

CURRENT ASSETS

Cash and cash equivalents 167,313 121,779 172,478 402,489 1,015,216

Bonds and securities 35,306 156,411 29,544 21,516 139,849

Derivative financial instruments 3,495 14,210 - - - - - -

Receivables from customers 118,194 121,724 87,688 136,913 298,619

Retiring cars for renewing the fleet 95,809 78,960 47,616 63,965 339,853

Recoverable taxes 17,479 21,895 33,959 38,935 55,625

Prepaid expenses 6,140 5,321 2,948 13,681 37,252

Related parties - - - - - - - - 14,139

Other short-term assets 7,825 8,977 9,585 14,158 12,437

Total current assets 451,561 529,277 383,818 691,657 1,912,990

NON-CURRENT ASSETS

Securities - - - - 3,333 6,721 1,685

Deposits in court 7,294 8,699 9,521 14,379 47,033

Receivables from customers 6,861 6,353 7,425 2,639 13,052

Recoverable taxes - - - - - - - - 1,212

Prepaid expenses - - - - - - - - 1,108

Related parties - - - - - - - - 302

Assets held for sale - - - - - - - - 3,223

Other long-term assets 3,102 302 2,913 2,121 1,892

Property, plant and equipment 890,832 998,756 917,407 1,591,234 4,411,765

Investments - - - - - - 442 2

Intangible assets 5,321 4,334 4,800 85,409 900,680

Total non-current assets 913,410 1,018,444 945,399 1,702,945 5,381,954

TOTAL ASSETS 1,364,971 1,547,721 1,329,217 2,394,602 7,294,944

LIABILITIES 2014 2015 2016 2017 3Q18

CURRENT LIABILITIES

Loans, financing and debentures 37,869 227,604 125,328 250,294 326,138

Trade accounts payable 63,436 101,280 71,258 168,193 765,026

Assignment of credits by vendors 78,761 155,774 82,753 186,463 730,515

Salaries, charges and social contribution taxes 3,358 3,075 5,484 10,499 25,643

Tax-related duties 1,845 1,493 1,600 6,945 8,192

Tax payable (IRPJ/CSLL) 586 - - - - - - - -

Dividends and interest on equity payable 8,566 10,711 - - 4,941 21,960

Advances from customers - - - - - - - - 6,145

Related Parties - - - - - - - - 8,832

Other accounts payable 837 22 12,754 4,778 18,700

Total current liabilities 195,258 499,959 299,177 632,113 1,911,151

NON-CURRENT LIABILITIES

Loans, financing and debentures 840,472 698,836 707,975 1,212,482 3,659,691

Provisions for contingencies 2,595 2,595 2,595 11,721 109,073

Deferred income tax and social contribution payments 18,700 20,735 17,715 51,091 11,992

Other accounts payable - - - - 862 3,914 2,374

Total non-current liabilities 861,767 722,166 729,147 1,279,208 3,783,130

Total liabilities 1,057,025 1,222,125 1,028,324 1,911,321 5,694,281

SHAREHOLDERS' EQUITY

Capital stock 299,279 299,279 299,279 397,900 977,502

Share issue expenses (15,038) (15,038) (15,038) (15,038) (15,038)

Treasury shares (5,906) (5,906) (5,061) (9,785) (7,153)

Asset valuation adjustments - - 4,864 (9,176) (11,914) (4,243)

Capital reserve 6,743 7,014 7,647 60,167 542,398

Appropriated retained earnings 22,868 35,383 23,242 61,951 38,564

Retained earnings - - - - - - - - 68,633

Total shareholders’ equity 307,946 325,596 300,893 483,281 1,600,663

30

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,364,971 1,547,721 1,329,217 2,394,602 7,294,944

Cash Flow (R$ thousand)

STATEMENT OF CASH FLOW 2014 2015 2016 2017 3Q18

Cash flow from operating activities

Income for the period 24,788 18,561 28,907 60,599 126,926

Adjustments by:

Income tax and social contribution tax on profit 6,218 3,891 6,914 20,257 37,489

Depreciation and amortization 84,054 98,448 98,501 137,550 210,306

Provisions of claims and stolen cars 19,099

Written-off residual value of retiring cars for renewing the fleet 256,999 311,212 332,814 479,218 904,040

Residual value of stolen vehicles and total loss - - 14,689 14,557 10,543 14,207

Share-based payment provision 582 271 699 1,590 4,019

Financial charges on financing 90,381 121,040 129,408 123,099 207,428

Allowance for doubtful accounts 8,947 14,524 9,180 5,754 4,196

Provisions for contingencies - - - - - - 3,281 (607)

Provision for profit sharing - - - - 2,366 4,425 541

Adjustment to present value - - 429 1,044 (755) (216)

Provision for impairment - - - - - - (951) - -

Assignment cost - - 3,402 9,689 4,324 15,333

Cost of raising capital through debentures - - - - - - 24,760 - -

SWAP - - - - - - 18,537 20,099

Other (823) (139) 5,270 4,238 34,204

Adjusted Income 471,146 586,328 639,349 896,469 1,597,064

Changes in Assets and Liabilities

Receivables from customers (20,410) (17,564) 22,740 (18,466) 13,596

Recoverable taxes (1,415) (12,979) (14,765) (3,958) 3,215

Prepaid expenses 2,119 820 2,133 (3,069) 13,867

Acquisition of vehicles net of the balance payable to suppliers (automakers) (483,139) (378,223) (404,438) (699,025) (43,696)

Other assets 6,103 (4,886) (3,801) (10,407) (23,840)

Suppliers - excluding automakers (3,917) 8,032 (2,409) 4,985 (1,335,088)

Other liabilities (25,776) (5,535) 12,240 (21,759) (40,786)

Net cash provided by operating activities (55,289) 175,993 251,049 144,770 184,332

Cash flow from investing activities

Acquisitions of investments - - - - - - (177) (210,004)

Acquisitions of other investments - - - - - - - - 442

Loans to related parties - - - - - - - - 3,470

Acquisition of other property, plant and equipment and intangible assets (4,256) (3,682) (4,439) (21,956) (16,591)

Acquisition of bonds and securities 33,226 (121,105) 123,534 4,640 (113,297)

Net cash provided by investing activities 28,970 (124,787) 119,095 (17,493) (335,980)

Cash flow from financing activities

Interest on loans, financing and debentures paid (80,566) (110,636) (121,047) (126,383) (180,371)

Capital raised through loans, financing and debentures 358,575 114,766 235,340 892,082 1,962,191

Amortization of loans, financing and debentures (189,600) (97,857) (384,262) (642,601) (941,570)

Issuance of shares and funds from the stock option plan (5,906) - - 779 2,325 2,466

Distribution of Interest on Equity and Dividends (13,681) (3,000) (50,255) (14,731) (50,805)

Share buy back - - - - - - (7,957) - -

Interest on equity paid to the shareholders of the subsidiary Unidas S.A. prior to the business combination

- - - - - - - - (27,536)

Net cash provided by financing activities 68,822 (96,727) (319,445) 102,735 764,375

Increase (decrease) in cash and cash equivalents 42,503 (45,521) 50,699 230,012 612,727

Statement of decrease in cash and cash equivalents

At the beginning of the period 124,810 167,300 121,779 172,478 402,489

At the end of the period 167,313 121,779 172,478 402,489 1,015,216

Activities not affecting cash

Total vehicles + accessories acquired for property, plant and equipment (517,860) (509,888) (329,046) (859,932) (2,001,512)

Change net of the balance payable to suppliers (automakers) 34,720 110,877 (110,323) 160,907 666,424

Acquisition of assets through liabilities or financial lease - - 20,788 34,931 - - - -

Total cash paid or provisioned in the acquisition of vehicles (483,140) (378,223) (404,438) (699,025) (1,335,088)

locamerica er 4t15 - amazon s3 · 2016 2017 1q18 2q18 3q18 roic cost net of taxes-0.9 p.p. spread...

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